This reform, which must still be approved by parliament, would allow foreign companies to get their 26% stake to 49% in the insurance industry, announced a source in the Prime Minister Manmohan Singh .
In retirement savings, previously closed to FDI, foreign groups should be able to enter up to 26% of capital. "The government has approved the Insurance Act," the source said on condition of anonymity.
The Prime Minister and his new finance minister, Palaniappan Chidambaram, insisted for weeks on the need to boost Indian investment abroad and to stimulate a slowing economy and shore up the budget deficit.
After years of strong economic growth close to 10%, the third largest economy in Asia recorded a GDP growth limited to 5.5% in the first quarter of the 2012-2013 fiscal year (April-June), its lowest growth in over two years.
The government has already announced a series of economic reforms to liberalize the sectors of retail, aviation and broadcasting. But these ads unpopular, decided by a center-left government that campaigned on the theme of the fight against poverty, have created strong tensions within his camp and a virulent opposition parties of the opponent.
The coalition government has recently lost an ally with the resignation of six ministers from the regional party Trinamool Congress Party, on the grounds that opening retail to foreign multinationals threatened the survival of many small businesses. This particular party denounced a "fire sale to foreigners in India."
The country that boasts of Asia's largest rail network and possibly the world's highest passenger traffic, will soon roll out a premier train service between Mumbai and Goa — popular destinations on the west coast.
3 years, 11 months ago
Shiv Sena Member of Parliament, Ravindra Gaikwad, in the news for slapping an Air India employee with his slippers, may be permanently barred from flying on the country's national carrier. The Osmanabad MP has refused to apologise for his behaviour. According to latest reports, Air India has cancelled Gaikwad's return ticket from Delhi to Pune.
4 years ago